ING DIRECT has announced a new funding relationship with mortgage manager Resi, going against the trend of lenders scaling back their wholesale funding operations due to tough market conditions.
Resi was formerly funded in part by Macquarie Bank.
“Resi had actually been looking to work with ING DIRECT for some time,” said Resi head of marketing Lisa Montgomery. “It was a natural fit for ING and Resi to come together.”
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Backed by existing funder Challenger, and now balance sheet lender ING DIRECT, Ms Montgomery said Resi’s diversified funding would give the business considerable strength in the current market.
“We’ve had a great relationship with Challenger for many years and this will continue into the future.
“It’s very difficult for any business to obtain a competitive advantage in the current environment, however diversified funding will bring greater opportunity for Resi to develop new products,” Ms Montgomery said.
ING DIRECT’s head of mortgage management Brett Mansfield said Resi’s infrastructure and well-established business model were appealing.
“Our model was developed on attracting established business operators with strong management, sound reputation, strong risk management practices and diversified distribution,” he said.
“Resi comfortably meets these hurdles and we welcome them as long-term business partners.”
Mr Mansfield said ING DIRECT was unlikely to accredit any more mortgage managers in the near term. But he was “always willing to hold discussions with potential managers who believe they meet our program’s criteria”.
